- Bitcoin price has done well in the past few weeks.
- It soared after the strong US jobs numbers.
- Focus shifts to Powell speech, US inflation data, and earnings season.
Bitcoin price has done well in the past few days as the crypto and fear and greed index rises while the VIX and DXY retreats. BTC has remained comfortable above $17,000, which is much higher than last month’s low of $15,500. The BTC/GBP pair has risen to 14,900.
Jerome Powell speech and US inflation data
The BTC price has risen modestly in the past few days as investors react to the mixed jobs numbers from the United States. Data by the Labor Department showed that the economy added over 225k jobs in December, bringing the 2022 additions to over 4.2 million. The unemployment rate dropped to 3.5%, the lowest point in years.
These numbers helped push Bitcoin price and stocks higher. The Dow Jones has added over 1000 points in the past 3 trading days while the Nasdaq 100 has bounced back by more than 4% in the same period. At the same time, the VIX index, which is a good measure of volatility, has moved to $22 while the US dollar index plunged to $103.
Read more about how to buy crypto with PayPal.
There are three main earthquakes that will affect the BTC/USD and BTC to GBP pairs. First, Jerome Powell will deliver his first statement of the year on Tuesday. In it, he will likely sound a bit hawkish in a bid to push back against market expectations. Therefore, his speech could have a major impact on Bitcoin, other cryptocurrencies, stocks, and the US dollar index.
Second, the other major earthquake will come on Thursday when the US will publish the latest inflation numbers. Economists expect the data to show that prices continued retreating in December. A lower inflation figure could see the Fed start its pivot.
Finally, Wall Street banks will start publishing their results this week. Data compiled by FactSet shows that analysts expect that the S&P 500 will report its first negative growth since 2020. Weak earnings could push stocks lower, which will drag crypto.
Bitcoin price prediction
The daily chart shows that the BTC/USD price has tilted upwards in the past few days. It has now moved to the 50-day moving average and is slightly above the important support level at $16,460. Bitcoin has also formed a small head and shoulders pattern. Therefore, the coin will likely have a bearish breakout as sellers target the next key support level at $15,500.
Contributors
